It's beginning to look like....some holidays?

I hope this doesn't sound like a whiny post, especially at this time of year, but I have to admit...I'm a little annoyed.  This is our first year with kids in public school.  I've heard how things have become extremely "PC", but this year, I actually had to experience it. Bleh! 
The whole thing really baffles me.  I would guess that, at least where we live in Wyoming , probably at least 95% of the people here celebrate Christmas.  (I have no statistical evidence of this, but I think it's a fair, probably low, guess.)  I'm not pretending that even half of those people actually know and celebrate the true meaning of Christmas, but it just seems like if that many people are claiming to take part in Christmas, more attention should be given to this holiday in it's truest sense.  I honestly don't have a problem with my kids learning about other holidays, especially since we're working hard at home to teach them the real meaning of why we celebrate.  I want my kids to be multi-cultural, and have little dreams of them becoming missionaries spreading the Gospel to unreached people, but for now, we live in America, where instead of a "melting pot," we're forced to be a "big stew."  Going along with that food analogy, there are tons of artificial ingredients being put into this stew that are not healthy at all.  For instance, when Christmas is mentioned (briefly) it's of course completely secular and all about reindeer, snow, mittens, and Santa (although I even noticed that guy was pretty absent at the programs we went to).  The other holidays which are highlighted seem to be portrayed with cautious care, making sure the facts are portrayed correctly, even if there is "religion" involved.  My biggest question after our last program was, "What are they afraid of?"  We can learn the miracle of Hanukkah, so why can't we accurately hear the story of Jesus?  If they are taking such great pains to be all-inclusive, why can't we have the real story?  I'm curious to know what the rules are?  I do have some music teacher friends, and I'll have to do some asking around to find what actually can be done.  Are educators just scared of what could happen if they are not painstakingly PC, or are there laws that truly dictate what can be proclaimed in a "Winter" Concert.
Our culture is so "enlightened" that we can't even enjoy these types of things because a lot of it honestly feels forced.  For example, at my son's concert, there was a "Kwanzaa" part of the program.  This cracked me up, because all of the children singing about this made-up holiday (I know....very un-PC) were as white as Saltine Crackers!  I was told there are some black kids at his school, just not in the first grade.  (I wonder how many of those kids celebrate Kwanzaa?)
I tend to be a fairly "middle of the road" person on a lot of these kinds of topics.  I wish there could be some balance.  When our kids attended a private Christian school, the pendulum was clear on the other side.  The kids (ranging from preschool to 6th grade) sang sacred Latin songs and only things that were accompanied by an organ.  Don't get me wrong, it was beautiful, even though I had to nudge Kirk to keep him awake.  I don't think the fun has to be sucked out of Christmas, but I do want to celebrate Christmas, really and truly CHRISTMAS!  I would really love to hear from you all about the topic of today.  What are some solutions?  Should Christians just sit back and continue to see everything watered down or removed completely?  What really are the "rules" and what are the consequences of not following those rules?  I really want to hear your thoughts.